The auditor designs the risk assessment procedures that he believes will be effective in assessing the risk of material misstatement for the entity.According to the auditing standards,the risk assessment process should include
A)internal control tests for significant accounts
B)analytical procedures
C)observation of inventory
D)substantive test of transactions

Question

Quizplus · Accepted Answer

According to the auditing standards, the risk assessment process should include analytical procedures to assess the risk of material misstatement. Internal control tests for significant accounts, observation of inventory, and substantive tests of transactions may also be included in the risk assessment process, but they are not the only procedures required.

The Auditor Designs the Risk Assessment Procedures That He Believes